How Low Dividend Yield Stocks Can Be Used For Income Planning [View article]

Very informative spreadsheet/web page you put together. Thanks for sharing it. However, one thing to point out is that the average growth rate is more important over time than how many consecutive times they raised by x% or more. So they can have a few 8% years and a few 12% years. But it's the average that matters.

I think what might happen is that these stocks would drop more than they did in 2008/2009 because they have run so far. But I would predict that in a serious downturn they would not drop as much as the S&P 500. What would likely happen is that their P/Es would come back into line.

It's a very good point, but a 49% payout ratio is not that bad. Also, I'm not predicting a 15% dividend growth rate. I just used it for example's sake. The goal is to get investors to play around with the numbers themselves.

Right, it does depend on the main goal/reason for investing as you mention. So different types of investors can use different weighting schemes and variables. Many dividend-growth investors ONLY want income so they are looking at metrics for dividend yield, dividend growth, and dividend sustainability.

How A Company Like Procter & Gamble Can Save Your Retirement [View article]

Not everybody needs to be invested 100% in equities. It depends on their risk profile and whether or not they need to take that risk. It is also important to point out that in my example they are basically living off the dividends. So the risk in that vs. market pricing risk is different. In general most people should not be 100% in stocks when they are retired in my opinion. But if they are living off of dividend income from companies that have a long history of increasing their dividends (or at least not cutting them), then the risk is reduced greatly.